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Issues:
1. Validity of acknowledgment in balance sheets for the purpose of limitation. 2. Rate of interest applicable to the claim. 3. Possibility of decree payment by instalments. 4. Continuation of attachment before judgment for recovery. Detailed Analysis: Issue 1: Validity of acknowledgment in balance sheets The plaintiff filed a suit for recovery of money against the defendant company, alleging that the defendant, a registered company, failed to repay a loan. The court below found the suit within time based on acknowledgments in the defendant's annual balance sheets. The defendant contended that a balance sheet cannot constitute an acknowledgment under Sec. 19 of the Indian Limitation Act. The defendant argued that the plaintiff, being a director of the company, had a fiduciary relationship, and hence, the balance sheet could not be a valid acknowledgment. However, the court held that the balance sheet did constitute an acknowledgment of liability, as it listed the plaintiff's claim in the company's liabilities. Citing precedents, the court concluded that a balance sheet could imply the continuance of liability, even if not expressly stated, and thus, upheld the lower court's decision that the claim was not time-barred. Issue 2: Rate of interest The defendant argued that the lower court erroneously awarded interest at 5% per annum instead of the agreed 4%. The appellate court agreed with this contention and modified the decree to award interest at 4% per annum for the relevant period. The court clarified the correct rate of interest applicable to the claim, thereby adjusting the lower court's decision on this matter. Issue 3: Possibility of decree payment by instalments The defendant requested the court to allow payment of the decretal amount by instalments. After considering the circumstances, the court granted the defendant two years to pay the entire decretal amount along with interest and costs. Additionally, a clause was attached to the decree, enabling recovery of the entire amount in case of default in paying consecutive instalments. The court, therefore, allowed the defendant to pay the decree amount in instalments within a specified period, subject to the mentioned conditions. Issue 4: Continuation of attachment before judgment The plaintiff requested the continuation of an attachment before judgment to facilitate recovery in case of default. The court found this request reasonable and ordered the attachment to continue for two years in view of the instalment decree. This decision ensured a mechanism for the plaintiff to recover the decretal amount in case of non-payment by the defendant. In conclusion, the High Court partially allowed the appeal, confirming the lower court's decree with modifications related to interest rate, instalment payment, and continuation of attachment before judgment.
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